Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should seek the relevant advice.
Market Opener – 10 May 2019
Local Markets Commentary
The Australian market opens Friday trade with a comprehensive monetary policy report due from the Reserve Bank of Australia (RBA), and ahead of further key data out of the US tonight, as US-China trade talks continue in Washington and broader geopolitical tensions simmer.
The RBA quarterly monetary policy statement is scheduled for release 11.30am AEST.
Changes in forecasts and supporting rationale will spawn plenty of commentary and could swing the $A.
Regionally today, the Bank of Japan releases a summary of considerations from last month’s policy meeting.
China’s April lending figures are anticipated anytime from today.
In overnight commodities trade, WTI crude turned lower and Brent settled just US2c higher.
US gold futures (June) closed modestly higher.
Iron ore (China port, 62% Fe) slipped further, but remained above $US95.35/t.
LME copper and nickel continued to fall, again copper slightly and nickel decisively. Aluminium swung to a gain.
The $A rose to ~US 69.90c after trading at US69.70c early yesterday evening.
The RBA quarterly monetary policy statement is scheduled for release 11.30am AEST.
Changes in forecasts and supporting rationale will spawn plenty of commentary and could swing the $A.
Regionally today, the Bank of Japan releases a summary of considerations from last month’s policy meeting.
China’s April lending figures are anticipated anytime from today.
In overnight commodities trade, WTI crude turned lower and Brent settled just US2c higher.
US gold futures (June) closed modestly higher.
Iron ore (China port, 62% Fe) slipped further, but remained above $US95.35/t.
LME copper and nickel continued to fall, again copper slightly and nickel decisively. Aluminium swung to a gain.
The $A rose to ~US 69.90c after trading at US69.70c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets fell on opening overnight, European indices largely trending yet lower towards close, but US indices moving higher during second-half trade.
Geopolitical issues remained in focus.
China-US high-level trade talks officially resumed in Washington.
Yesterday, China declared it was ready to negotiate again in Washington overnight with the ‘utmost sincerity’ and called on the US to help resolve issues with ‘cooperation and consultations’.
However, speaking of countering the US decision to increase import taxes on goods from China from the commencement of Friday (US ET), a China commerce ministry spokesperson claimed, ‘Mentally and materially, China is much better prepared than its US counterpart’.
In addition, China media highlighted commentary from US companies and organisations bemoaning the US threat to increase tariffs. Meanwhile, US soy futures fell through a 10-year low.
For his part, the US president described a letter from China’s president Xi Jinping as ‘beautiful’ and said he (US president) held an alternative to the proposed agreement.
This, after publicly accusing China of ‘cheating our workers and stealing our jobs’.
Also yesterday, North Korea was reported to have fired two more projectile weapons.
The US administration then reported the US secretary of state had returned from Baghdad to discuss North Korea and Iran with other officials. The US also claimed it had seized a North Korea cargo vessel.
Yields on 10-year US bonds fell below those for three-year treasuries for a short time.
Among a batch of US data releases, the April trade deficit was estimated at $US50.0B (up 1.5%) from $US49.3B at the end of March.
Exports came in 1.0% higher (to $US212B) and imports up 1.1%. (to $US262B)
Producer prices appreciated 0.2% for the month and remained at 2.2% year-on-year, following a 0.6% March gain.
March wholesale inventories slipped 0.1% after increasing by 0.4% in February.
Weekly new unemployment claims fell by 2000.
Tonight in the US, March CPI and the national April budget statement are due.
Elsewhere, the UK reports a swag of key data, including March quarter GDP, March trade balance, industrial production and construction output.
Meanwhile, speculation increased regarding the length of tenure remaining for the UK PM.
Companies expected to report earnings later today or tonight include: Cars.com, Eni SpA, Inpex, JD.com, Linde, Marriott, Sumitomo Mitsui, Suzuki Motor and Viacom.
In overnight corporate news, Chevron pulled out of its bid for Anadarko Petroleum, not willing to match the Occidental Petroleum offer.
Chevron will pick up a $US1B fee, and after announcing this would support a buy-back boost, benefited further with a 3% stock price gain.
Uber placed tonight’s US IPO at $US45 per share (~$US82B overall) following this week’s market struggle for Lyft.
Intel suffered a downgrade and warned profit margins would likely suffer under an operational restructure to a data centres, logic and memory focus, from personal computer chip manufacturing. The stock was pushed more than 5% lower.
Geopolitical issues remained in focus.
China-US high-level trade talks officially resumed in Washington.
Yesterday, China declared it was ready to negotiate again in Washington overnight with the ‘utmost sincerity’ and called on the US to help resolve issues with ‘cooperation and consultations’.
However, speaking of countering the US decision to increase import taxes on goods from China from the commencement of Friday (US ET), a China commerce ministry spokesperson claimed, ‘Mentally and materially, China is much better prepared than its US counterpart’.
In addition, China media highlighted commentary from US companies and organisations bemoaning the US threat to increase tariffs. Meanwhile, US soy futures fell through a 10-year low.
For his part, the US president described a letter from China’s president Xi Jinping as ‘beautiful’ and said he (US president) held an alternative to the proposed agreement.
This, after publicly accusing China of ‘cheating our workers and stealing our jobs’.
Also yesterday, North Korea was reported to have fired two more projectile weapons.
The US administration then reported the US secretary of state had returned from Baghdad to discuss North Korea and Iran with other officials. The US also claimed it had seized a North Korea cargo vessel.
Yields on 10-year US bonds fell below those for three-year treasuries for a short time.
Among a batch of US data releases, the April trade deficit was estimated at $US50.0B (up 1.5%) from $US49.3B at the end of March.
Exports came in 1.0% higher (to $US212B) and imports up 1.1%. (to $US262B)
Producer prices appreciated 0.2% for the month and remained at 2.2% year-on-year, following a 0.6% March gain.
March wholesale inventories slipped 0.1% after increasing by 0.4% in February.
Weekly new unemployment claims fell by 2000.
Tonight in the US, March CPI and the national April budget statement are due.
Elsewhere, the UK reports a swag of key data, including March quarter GDP, March trade balance, industrial production and construction output.
Meanwhile, speculation increased regarding the length of tenure remaining for the UK PM.
Companies expected to report earnings later today or tonight include: Cars.com, Eni SpA, Inpex, JD.com, Linde, Marriott, Sumitomo Mitsui, Suzuki Motor and Viacom.
In overnight corporate news, Chevron pulled out of its bid for Anadarko Petroleum, not willing to match the Occidental Petroleum offer.
Chevron will pick up a $US1B fee, and after announcing this would support a buy-back boost, benefited further with a 3% stock price gain.
Uber placed tonight’s US IPO at $US45 per share (~$US82B overall) following this week’s market struggle for Lyft.
Intel suffered a downgrade and warned profit margins would likely suffer under an operational restructure to a data centres, logic and memory focus, from personal computer chip manufacturing. The stock was pushed more than 5% lower.